Regional Express (Rex) has reacted to repeated insinuations by Sunshine Express Airlines that its planned acquisition by Rex would not have been in the best interests of Sunshine Express staff.
Giving the true reason for not proceeding with the acquisition, Rex Managing Director Mr Geoff Breust said, "After the announcement of the deal, Sunshine Express introduced a new condition requiring Rex to guarantee the solvency of Sunshine Express for 4 years.
“Sunshine Express wanted this because the owners were to take the remaining assets out of the company before the transaction, thus handing it over to Rex in a severely adverse condition. To give such an unconditional undertaking in these circumstances is not something a responsible publicly listed company can do.
"Rex was willing to use its best endeavours to make a success of the operation and to keep all staff employed. We were planning to acquire several aircraft to place into the Sunshine Express network. Additionally, Sunshine Express staff would have been able to take advantage of employment opportunities within the Rex Group.”
Mr Breust also commented that the recent announcements by Sunshine Express seem to indicate that they will be ceasing all regular public transport (RPT) operations and conveyed his sympathy to the staff and communities affected.
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